Stock Repurchase Plan Initiated by Kinder Morgan (NYSE:KMI) Board

Kinder Morgan (NYSE:KMI) announced that its board has approved a share buyback program, which allows the company to repurchase $2.00 billion in shares on Wednesday, July 19th, EventVestor reports. This repurchase authorization allows the pipeline company to buy up to 4.6% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

A number of research firms have commented on KMI. Stifel Nicolaus set a $25.00 target price on Kinder Morgan and gave the stock a “buy” rating in a report on Thursday. BidaskClub lowered Kinder Morgan from a “sell” rating to a “strong sell” rating in a report on Wednesday. BMO Capital Markets reissued a “buy” rating and issued a $26.00 target price on shares of Kinder Morgan in a report on Friday, July 28th. Mizuho began coverage on Kinder Morgan in a report on Thursday, July 27th. They issued a “neutral” rating and a $22.00 target price for the company. Finally, Zacks Investment Research raised Kinder Morgan from a “sell” rating to a “hold” rating in a report on Thursday, July 27th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the stock. The company presently has an average rating of “Buy” and a consensus price target of $23.91.

Shares of Kinder Morgan (KMI) traded up 0.82% during midday trading on Friday, hitting $18.55. The stock had a trading volume of 11,593,869 shares. Kinder Morgan has a 52-week low of $18.23 and a 52-week high of $23.36. The stock has a market cap of $41.43 billion, a PE ratio of 61.22 and a beta of 0.64. The firm has a 50 day moving average price of $19.65 and a 200-day moving average price of $20.40.

Kinder Morgan (NYSE:KMI) last released its quarterly earnings results on Wednesday, July 19th. The pipeline company reported $0.14 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.15 by $0.01. The firm had revenue of $3.37 billion for the quarter, compared to analyst estimates of $3.12 billion. Kinder Morgan had a net margin of 6.20% and a return on equity of 4.41%. Kinder Morgan’s revenue for the quarter was up 7.1% on a year-over-year basis. During the same period in the previous year, the business posted $0.15 earnings per share. Equities analysts predict that Kinder Morgan will post $0.64 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 15th. Investors of record on Monday, July 31st were issued a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a yield of 2.70%. The ex-dividend date of this dividend was Thursday, July 27th. Kinder Morgan’s payout ratio is 161.29%.

In related news, VP Dax Sanders acquired 2,600 shares of Kinder Morgan stock in a transaction on Tuesday, May 30th. The shares were purchased at an average cost of $18.60 per share, for a total transaction of $48,360.00. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director William A. Smith acquired 4,903 shares of Kinder Morgan stock in a transaction on Monday, July 31st. The shares were bought at an average price of $20.24 per share, for a total transaction of $99,236.72. Following the completion of the purchase, the director now directly owns 14,587 shares in the company, valued at $295,240.88. The disclosure for this purchase can be found here. Over the last ninety days, insiders have purchased 507,503 shares of company stock valued at $9,437,597. Company insiders own 13.99% of the company’s stock.

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Kinder Morgan Company Profile

Kinder Morgan, Inc is an energy infrastructure company. It operates through five segments. Its Natural Gas Pipelines segment is engaged in the ownership and operation of interstate and intrastate natural gas pipeline and storage systems, and liquefied natural gas facilities, among others. Its CO2 segment is engaged in the production, transportation and marketing of carbon dioxide (CO2) to oil fields and the ownership and operation of a crude oil pipeline system, among others.

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